Resolved Question
How I define the angle of the channel?
Currently (November, 20, 2009) I saw that the USD/CAD is going to the top of a Channel (Daily periodicity - D1).
My answer is: Exist some type of the angle that I use as a reference to entry my SELL order?
I don't know if I entry now (the market will not go up again) or if I wait more time believing that the market will go up more. To each angle, I have a different TOP resistance. I don't know what the reference angle I use.
As example, I upload a Image to understand better my question.
http://img340.imageshack.us/img340/3188/angle.gif
8 months ago
Best Answer - Chosen by Asker
It's hard to determine precisely which angle is best. Maybe it would be better if you check other resistance levels to set your entry order, like placing your short order at a psychologically significant level within the range of those trend lines you've drawn. Or maybe you can zoom in to a smaller time frame, say the 1-hour or 4-hour chart, in order to spot a previous resistance level at which you can place your entry order.
8 months ago
Answers (2)
Chart pattern recognition is a skill that takes time to develop. I wouldn't put too much emphasis on angles but more on price action.
You usually want to use the highs and lows of candles, their "wicks" to draw your trendlines.
Regarding your example, the price differences between your TOP resistances are small so it doesn't really matter which you choose as it will be futile to try and predict future price direction to the smallest pip.
8 months ago
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Any one of those lines can be used, however i would not base a bind entry on those lines, but wait for price to confirm the line as a resistance level that is going to hold strong.
8 months ago
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